BANKING AFFAIRS

Detailed explanation-1: -In 2007, then Finance Minister P. Chidambaram introduced the novel scheme of Reverse Mortgage loan (RML) in India. RML is considered as an ideal solution for senior citizens to finance their retirement, who owns the house.

Detailed explanation-2: -In a Reverse Mortgage, a senior citizen who owns a house can mortgage the property with a bank. Instead of paying EMIs to the bank like with a regular home loan, the bank makes monthly payments to you in a reverse mortgage. Moreover, you can occupy the house and are not required to repay the loan.

Detailed explanation-3: -Reverse Mortgage Loan (RML) enables a Senior Citizen i.e. above the age of 60 years to avail of periodical payments from a lender against the mortgage of his/her house while remaining the owner and occupying the house.

Detailed explanation-4: -SBI Reverse Mortgage Loan provides an additional source of income for senior citizens of India, who have a self-acquired or self-occupied home in India.

Detailed explanation-5: -The scheme of reverse mortgage has been introduced recently for the benefit of senior citizens owning a house but having inadequate income to meet their needs. Some important features of reverse mortgage are: A homeowner who is above 60 years of age is eligible for reverse mortgage loan.